Keeping it simple and looking at the pattern of swing highs and lows earlier this week paid off. Once the series of lower highs and lower lows was broken, the market has been surging higher and higher. Those who followed that made a nice profit very fast. So it looks like the recent decline was a 3 wave move, a correction which I labeled ((a))((b))((c)). So stocks should be working their way to new highs on the year shortly. It's possible we get another down leg to a new low if the correction decideds to turn into a double zig-zag, but it would still be a 3 wave move, giving us the clue we need to know the larger trend. But seeing as this correction for a Minor wave 4 is already quite large compared to its brother Minor wave 2, I doubt wave 4 will materialize into anything larger. So look for the uptrend to remain intact in the coming days.
Although it it's a little late to get bullish here at these levels, it does seem the path of least resistance right now is up. I'd be bullish, or on the sidelines.
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